Vegas Hotel in Kings Cross sells for $32m
Top 200 ranked gaming hotel, the Vegas Hotel in Kings Cross, has been sold for $32m, one of the first hotels to be sold in the lockout-hit area since 2015.
The deal, organised by JLL’s National Director of Hotels John Musca, sees the hotel, previously owned by the Redmond Company and an adjacent property bought by a private local hotel group.
The NSW Government’s Joint Select Committee into Sydney’s Night Time Economy published its report and recommendations this week and said it believed the lockouts and time restrictions should remain in place, but be reviewed in 12 months. Despite this, Musca said the sale showed that people do have confidence in the Cross.
“Hotel investments in the Kings Cross and Potts Point precinct represent much more than operating acquisitions. This is as much about being a savvy investment in property as it is a strong hotel acquisition. There is so much redevelopment under way in the area driving the residential density, improving amenity and increasing values,” Musca said.
The Vegas is the first hotel to sell in the Cross since JLL’s sale of the Bourbon Hotel and Swans Club and Empire Hotel to Iris Capital in 2014 – all three of which form part of a significant amalgamated site redevelopment.
“JLL is delighted to be playing such a significant and positive role in the evolution of the Kings Cross landscape having sold not only the three hotels mentioned above but also the Crest Hotel in 2013. All are evolving businesses that offered strategic future site optimisation,” Musca added.
The Vegas Hotel and the neighbouring property sit on 506 square metres with dual street frontages to Darlinghurst Road and Kellett Street. They have a B2 Centre zoning with a six-storey development height limit and 30 poker machines.
The Vegas Hotel sale is the third by JLL for the Redmond Company following on from the St Patrick’s Tavern in Seven Hills and the St Patrick’s Tavern in King St, Sydney.